SmartStops Featured Articles

"What's the biggest threat to achieving financial independence? Your own brain!" Nobel-winning prize theory and research from psychologists (Kanheman & Tversky) led to the beginnings of what is now called behavioral finance, with Thaler bringing that into the...

Great white paper by State Street Global Advisors that highlights the limits of diversification and the importance of risk protection: "Good downside protection can benefit portfolios in several ways. Studies, such as that by Bhansali and Davis (2010), have shown...

As the CIO of Sungarden Fund Mgmt writes: "MPT works well in strong markets and over periods of declining interest rates. This decade will likely see the turning point of that story, and I suspect that many financial planning firms will fight that trend, as they did...

When you place a Stop Order, you are setting the price below the current trading price such that if that price is hit, an order to sell will occur at your broker. If just set as a stop order, then the price at which it sells after the stop is triggered, will be a...

SmartStops Comment: We couldn't agree more with this timely advice (mid-May 2019) , from realinvestmentadvice.com: "For now, the market is working a corrective process which is likely not complete as of yet. As we head into the summer months, it is likely the...

There are a number of key differences between SmartStops.net and Tradestops.com. In fact, one of our subscribers after using Tradestops for awhile, told us - "you get us out much sooner then Tradestops". Here are some of the key comparisons: 1. Recently, a lot of...

"What's the biggest threat to achieving financial independence? Your own brain!" Nobel-winning prize theory and research from psychologists (Kanheman & Tversky) led to the beginnings of what is now called behavioral finance, with Thaler bringing that into the...

Survey of 342 analysts by Aviva Investors found sell-side research to be flawed, short term and incomplete. “Sell-side research has a significant influence on investors’ decision-making. But our study shows this research is often flawed,” wrote Euan Munro, CEO of...

Great white paper by State Street Global Advisors that highlights the limits of diversification and the importance of risk protection: "Good downside protection can benefit portfolios in several ways. Studies, such as that by Bhansali and Davis (2010), have shown...

As the CIO of Sungarden Fund Mgmt writes: "MPT works well in strong markets and over periods of declining interest rates. This decade will likely see the turning point of that story, and I suspect that many financial planning firms will fight that trend, as they did...

"There are serious consequences for firms that do not embrace the latest tech tools..." says Kelli Keough, the global head of digital wealth management for JPMorgan Chase. "All financial advisors must implement digital tools in their practice or they will lose...

SmartStops Comment: Good article pointing out the importance when it comes to investing to not letting your emotions go on a rampage. As the author Ritholtz points out: "Understanding what is and isn’t in your control can go a long way toward avoiding the sorts...

SmartStops comment: It appears that both Bush & Reagan had been discussing reforms to the capital gains tax, however nothing was done. Is Trump also now considering it? Some pundits claim this will help stimulate the economy further and redistribute the wealth...

Now don't say no one's warned you about an upcoming stock market correciton. It's inevitable. So are you going to protect your gains or what?! https://www.bloomberg.com/news/articles/2017-11-29/goldman-warns-highest-valuations-since-1900-mean-pain-is-coming

SmartStops comment: Glad to see Richard Thaler win the 2017 Nobel Prize for documenting the way people's behavior actually does not conform to economic models that portray them as perfectly rational. As he states: (Investors) "refuse to cut their losses on...

SmartStops comment: just came across this interesting point that indicates the DIY'ers are doing better then clients of Financial Advisors: .. These added services (education etc. from brokerage) seem to be helping, as self-directed investors tend to see quite a bit...

SmartStops comments: It's befuddling that this statement continues to get touted around - "But isn’t this market timing? We all know, after all, that timing the market is pure folly!" .. when indeed guru's like Andrew Lo, MIT have blown this "myth" apart again and...

The Difference Between Aggressive and Conservative Risk Alerts

Aggressive SmartStops are designed to provide maximum downside protection and typically lie closer to the current price of the stock or ETF. Conservative SmartStops allow for more price movement resulting in fewer triggers and a lower probability of whipsaw. Both signal families intelligently adjust in an effort to keep you in an uptrend longer while exiting early in a down trend. Investors often favor the Aggressive signals for positions they plan to exit soon or want to more closely protect their profits.

For those willing to let their symbol’s price fluctuation have a greater volatility, the Conservative SmartStop approach will fit well. The Conservative approach will definitely result in fewer triggers (perhaps even none throughout the year) but also allow more profits to be given back in periods of market corrections.

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